Ms. Ashu Gupta vs Mr. Sunil Tangri & Ors.

i.

“To declare the undervalue transaction of sale of property bearing No. F-21, Site-C, Surajpur Ind. Area Greater Noida, U.P. for Rs.1,00,00,000.00/- void and reverse the effect of such transaction, as it is prejudicial to the interest of COC/Corporate Debtor. ii. To punish the suspended directors for making undervalued transaction for sale of property to defrauding the creditors /members of the Corporate Debtor. iii. To pass any further order as this Hon’ble Tribunal may deem fit and proper under the facts and circumstances of the present application.”

"The Corporate Debtor under their books shown a total transfer of Assets Worth Rs. 1.75 Crores in place of actual sales consideration worth Rs. 2.25 Crores by the buyer, it clearly appears that Corporate Debtor diverted the money is Rs. 50 Lakhs which is evident from the records and said sum diverted into cash mode by the directors of corporate debtors and hence recoverable".

ix.

Therefore, Applicant was well aware that there is no undervalued transaction, however, she filed the Subject Application only with the intention to avoid paying the mutually agreed rent of Rs. 75,000/-.

x.

While rent of Rs. 22,000/- was arbitrarily fixed by Applicant even that has not been paid till date. No rent has been received by the Respondent No. 3 since May 2019.

xi.

Further the applicant has also filed a police complaint dated 18.01.2020 against the Respondent No. 3, which has also been filed post the rent concerns raised by the Respondent No. 3. Owing to the frivolous nature of the complaint, no action was taken by the Police against the Respondent No. 3.

xii.

Application was originally filed alleging undervalued sale of Subject Property. Applicant alleged that the sale was for Rs. 1 Crore. However, in its synopsis the Applicant has completely changed its stance.

xiii.

Applicant realised that her claim of undervalued transaction was untenable and hence has now shifted the entire focus on the cash transactions.

xiv.

Applicant has not filed any separate application and the allegations made in the synopsis filed by Applicant are outside the scope of present Application which is under Section 45 of the Code.

xv.

In view of the directions of the Adjudicating Authority vide order dated 06.07.2021, it is submitted that the cash transactions of Rs.50,00,000/- were not reflected in the Income Tax Return of Respondent No. 3. However, the issue in the present application is limited to the question of undervalued sale of property. The mode of payment is wholly irrelevant.

xvi.

That the transaction took place vide Agreements dated 06.04.2018 and the CIRP was initiated vide the order dt. 25.07.2019. Therefore in any case, the said transaction is beyond the one-year period specified under S. 46(1)(i) of the Code.

IBC Section 45-Avoidance of undervalued transactions.

(1)

If the liquidator or the resolution professional, as the case may be, on an examination of the transactions of the corporate debtor referred to in sub-section (2) determines that certain transactions were made during the relevant period under section 46, which were undervalued, he shall make an application to the Adjudicating Authority to declare such transactions as void and reverse the effect of such transaction in accordance with this Chapter.

(2)

A transaction shall be considered undervalued where the corporate debtor-

(b)

enters into a transaction with a person which involves the transfer of one or more assets by the corporate debtor for a consideration the value of which is significantly less than the value of the consideration provided by the corporate debtor, and such transaction has not taken place in the ordinary course of business of the corporate debtor.

IBC Section 46-Relevant period for avoidable transactions.

(1)

In an application for avoiding a transaction at undervalue, the liquidator or the resolution professional, as the case may be, shall demonstrate that—

(i)

such transaction was made with any person within the period of one year preceding the insolvency commencement date; or

(ii)

such transaction was made with a related party within the period of two years preceding the insolvency commencement date.

(2)

The Adjudicating Authority may require an independent expert to assess evidence relating to the value of the transactions mentioned in this section.

IBC Section 48-Order in cases of undervalued transactions.

The order of the Adjudicating Authority under sub-section (1) of section 45 may provide for the following:-

(a)

require any property transferred as part of the transaction, to be vested in the corporate debtor;

(b)

release or discharge (in whole or in part) any security interest granted by the corporate debtor;

(c)

require any person to pay such sums, in respect of benefits received by such person, to the liquidator or the resolution professional as the case may be, as the Adjudicating Authority may direct; or

(d)

require the payment of such consideration for the transaction as may be determined by an independent expert.

Section 54 in The Transfer of Property Act, 1882

54.

"Sale" defined.-"Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.

Sale how made.- Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument.

In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immoveable property takes place when the seller places the buyer, or such person as he directs, in possession of the property.

Contract for sale.-A contract for the sale of immoveable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property.

c. The Respondent No. 3 has paid the entire consideration amount of Rs. 2,25,00,000/- to the Corporate Debtor in the following manner: -

EL BIRENDRA PRASAD SINGH

D.E.(CIVIL) D.G.E. (DE) P.V. P.L. Govt. Approved Valuer, Chartered Engineer, Structural Designer & Surveyor, Approved Valuer From Govt. of India, Income Tax Central Board of Direct Tax of wealth Tax Act 1957] CAT-1-288/1995] M.C.D. Registration No. E-1138

Office: 147- ANSAL CHAMBER-II 6, BHIKHAJI CAMA PLACE NEW DELHI- 110066 Mail - valuer.bpsingh@gmail.com Ph: 26162524, M: 9811010414

IN THE PANEL OF :

THE INDIAN OIL CORPORATION LTD. NMPC, J.P. ASSOCIATE, P.W.D., (D.A.), DELHI METRO-RAILWAY, DENA BANK, BANK OF INDIA, STATE BANK OF INDIA, P.N.R. 3838, UCO BANK, AXIS BANK, IFCI, HUDCO etc.

Branch Office: K-36F, SAKET, NEW DELHI, 88262-9459 Ph: - 41765812

Consulting Engineers, Valuation for wealth Tax, Income Tax, House Tax, LLC, Gift Tax, Bank Loan, Claims, Formation of Tender & Contract Document for Civil works, Land Surveyors etc.

Ref. No. BPS/Val/Delhi/2010/0495

Date: 08/01/2010

TO

The Vice President, Axis Bank Ltd., SME (SBG) Centre, Delhi-1, Red Fort Capital, Parsenath Tower, 2nd Floor, Gale Market, New Delhi-110001

Valuation Report

As requested for the valuation of Industrial Property No. F-21, built on a land area measuring 1038 Sq. Mtr., Situated at Industrial Area Surajpur, Site C, Village Gulistanpur, Greater Noida, Distt. Gautam Budh Nagar (U.P.), which is owned by M/s Webtech Packaging India Ltd., having its Regd. Off. 163, Bird Floor, Kailash Hills, New Delhi Through its managing Director Sh. Sunil Kumar Tangri M/o Sh. B.P. Tangri B/o 163, Bird Floor, Kailash Hills, New Delhi- 110065 Name of Borrower is M/s Webtech Packaging India Pvt. Ltd.

The valuation report of above property, which was inspected and prepared as per instructed by you, is sent herewith for your records.

1.

Fair Market Value of the Property : Rs. 2,16,00,000/-

2.

Distress Value of the Property : Rs. 1,04,00,000/-

3.

Realizable Value of the Property : Rs. 1,73,00,000/-

4.

Govt. Value (Circle Rate Value) of the Property : Rs. 2,24,20,000/-

5.

Insurance Value of the Property : Rs. 1,12,00,000/-

(I)	BASIC INFORMATION
A.	Name of the bank branch/MCMC/CMC.	:
B.	Bank letter No. & date-requesting for undertaking valuation.	: As requested by Mr. Nadeem Dr. Rehman (Ref No. AXIS/VAL022V32) Axis Bank
C.	Whether valuation was made at the request of the borrower?	: No
D.	Name of the manager / officer who accompanied the valuer.	: No
E.	Valuation: whether fresh / revaluation / periodic valuation.	: Fresh
F.	Date of earlier valuation, if any.	: No
G.	Name of the previous valuer, if any.	: No
H.	Date of visit to the property.	: 05.01.2018
I.	Date on which valuation is made.	: 08.01.2018
J.	Person(s) in presence of whom valuation is made.	: -
K.	List of documents produced for verification.	: Copy of Lease Deed No. 2550, Dated 21.02.2007.
L.	Name of the borrower / borrower account with address, telephone nos. & nature of business.	: M/s Webtech Packaging India Ltd.
M.	Name / address / telephone no. of the owner/owner(s) of the property.	: M/s Webtech Packaging India Ltd., having its Regd. Off: 163, Hird Floor, Kailash Hills, New Delhi Through its managing Director Sh. Sunil Kumar Tangri W/o Sh. B. P. Tangri R/o 163, Hird Floor, Kailash Hills, New Delhi - 110065
II	VALUATION OF LAND
L.	Details of property	:
a.	Details of property offered as secured.	: Industrial Property No. F-21, built on a land area measuring 1030 Sq. Mtr., Situated at Industrial Area Surajpur, Site C, Village Gukatampur, Greater Noida, Distt. Gautam Budi Nagar (H.P.)
b.	Date of acquisition/purchase of land.	: 21.02.2007
c.	Value of the property as per regd. Sale deed	: Rs. 13,42,655/-
d.	Sale/Deed / title deed document no.	: Copy of Lease Deed No. 2550, Dated 21.02.2007
e.	Area of land (as per document/title deed)	: 1030 Sq. Mtr.
f.	Area of land (as per ROR)	: 1030 Sq. Mtr.
g.	Area of land (as per physical measurement)	: 1030 Sq. Mtr.

b.	Location of the property and parcel address
	Plot/Plot No.	Plot No. F-21
	At	Industrial Area Surajpur, Site C, Village Ghatampur, Greater Noida
	PO	Industrial Area Surajpur, Site C
	PS	Industrial Area Surajpur, Site C
	Fit
	Date	Greater Ruth Nagar
i.	Urban/semi-urban/rural	Urban
	Whether the property is situated in residential / commercial / major / industrial area	Industrial
k	Classification of locality - In kind of people staying (high / middle / poor class)	Middle class
l.	Type of property:
	i) Agricultural: In case it is an agricultural land, any conversion to house site plots is contemplated	N.A.
	ii) Industrial: If the property is industrial state for what type of activity/industry the property is well suited	N.A.
	iii) Residential (any restrictive clauses for sub-etc. To be furnished)	Industrial
	iv) Commercial	N.A.
	v) Institutional	N.A.
	vi) Others (specify)	N.A.
2.1	Title of the property - Free hold / Lease hold:	Lease Hold
a.	Ownership of the property:	M/s Webtech Packaging India Ltd., Sroog its Regd, Off. 163, Blvd. Floor, Kailash Hills, New Delhi Through its managing Director Sh. Small Kumar Tangri W/o Sh. R. P. Tangri S/o 163, Blvd Floor, Kailash Hills, New Delhi - 110055
b.	In case of joint ownership whether share is undivided/divided, if undivided, share of each owner:	Company Ownership
c.	Years paid up by:	Details available with owner
d.	Land revenue:	Details available with owner
e.	Land / Building Municipal Years:	Details available with owner
f.	Wealth tax assessed / paid, if any:	Details available with owner
2.2	Route:
g.	Names of tenants/owners / licensees, etc.:	N.A.
h.	Forkun in their occupation:	N.A.
i.	Monthly or annual rent / compensation / license fee, etc. Paid by each:	N.A.
ii.	Gross amount (except for the whole property):	N.A.

3.	Brief description of the property:	It is a G-1 Special RCC Frame Structure industrial building:
a.	Address of the property in detail:	Industrial Property No. F-21, built on a land area measuring 1800 Sq. Mtr., Situated at Industrial Area Surajpur, Site C, Village Ghatampur, Greater Noida, Dept. Eastern Ruth Nagar (H.P.)
b.	Manuscript Ward No.:
c.	Street No.:
d.	Survey/Plot No.:	Plot No. F-21
e.	Tax ID:
f.	Police Station (P.S):	Notable Industrial Area Site C
g.	Villages/Town (City):	Buildings of:
h.	State:	Eastern Ruth Nagar
i.	State:	Other Products
j.	Q	Dimensions of the site as per document:
		East to West:
		North to South:
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a.	Approval letter no. & date of development agitation / municipality etc. Authorizing construction	Not Available
i.	Whether funding are certificate from the development authorities / municipality etc. has been obtained:	Not Available
ii.	Does the land fall in an area included in any town planning scheme or any development plan of government or any statutory body? If so, give particulars:	UPSC/C
b.	Corner or intermittent plan	Corner
i.	Is a land locked land?	No
j.	Means and proximity to surface communication by which the locality is served:	By surface transport through Motor Road
k.	Road facilities:	Available
l.	Road (load of road and width):	Prices
m.	If the property is not within the city/town/abundant limit then state the distance of the property from the:
n.	Municipal office:	Within limit
h.	Municipal limits:	Within limit
o.	Water potentialities:	Available
p.	Possibility of frequent flooding:	Nil
q.	Underground sewerage system availability:	Available
r.	Drainage systems available:	Available
s.	Is power supply available in the site?	Available
t.	Development of surrounding areas:	Developed
u.	Possibility to duly advertise the school, college, hospital, market, bus stand, railway station etc.	Only advertises are available nearby.
4.3	Location advantages:	Yes, situated at Prime Location
	Location disadvantages (details):	No
h.	Other issues/points:
i.	Has the whole or part of the land been notified for acquisition by government or any statutory body? If yes, give date of the notification:	No
k.	Has any contribution been made towards development or is any demand for such contribution still outstanding:	Fully developed
l.	Whether covered under any state/central govt. documents (e.g. urban land calling act) is notified under agency area/scheduled area/employment area:	No.

a.	Sales:
	I. Give instance of value of immovable property in the locality. If available, indicating the name and address of the property, registration no. 5th price and area of the land sold.	Sales balances are not readily available
	II. If new instance are not available or not noted upon, please furnish of the basis of arriving at the land/office rate.	Basis of land property dealers and other relevant sources etc.
	III. Land rate adopted in this valuation (Market)	Rs. 10,000/- per Sq. Mtr.
b.	Valuation:
c.	Previous valuation details:	N.A.
	The detail of the previous valuation:	N.A.
h.	Present valuation detail: (Note the registered value should discuss in detail his approach in valuation of the property and indicate how the value has been arrived at, supported by necessary calculations.) Valuation of Property On Market Rates	Land & Building Method Land: 1938 Sq. Mtr. x Rs. 101,000/- = Rs. 1,03,00,000/- Building: 11172 Sq. Ft. x Rs. 1000/- = Rs. 1,11,73,000/- Total Market Value = Rs. 2,11,53,000/- Days Rs. 2,14,00,000/-
	Genl. Value (Circle Rate Value)	Land: 1938 Sq. Mtr. x Rs. 7,600/- = Rs. 78,00,000/- Building: 1938 Sq. Mtr. x Rs. 14,000/- = Rs. 1,45,32,000/- Total Cost of Genl. Value = Rs. 2,24,28,000/- Rs. 2,14,00,000/-
	Market value	Rs. 68,23,000/-
	Business Value of Land	Rs. 1,04,00,000/-
	Discount of Market value	Rs. 1,93,00,000/-
	Redeemable estimation of the property in case of distress rate, in case, the bank will sell the property through proceedings.

VALHATKOS SHEET

Property No. F-71, Industrial Area Suragpur, Site C, Greater Noida (D. P.), BASIS OF VALHATKOS

III. Valuation of building
1.	Basic information of the building (land details in part a)
a.	Type of building : (residential / commercial / industrial)	Industrial
b.	Year of commencement of construction and year of completion	2007
c.	Type of construction : load bearing main/first frames/land frame	ECL Frame Structure
d.	Estimated future life	Six years
e.	What is the floor space index permissible and percentage usually utilized	As per 5yr limit
f.	Approved letter note date of development authority / municipality / local body indicating construction of the building. Please attach a copy of the approved letter.	Not Available
g.	Whether the construction has been made as per approved plan? If not, please list the deviations made from the approved plan:	Not Available
h.	1. Built up area: G+1	GP - 5586.52 Sq. Ft. FP - 5586.52 Sq. Ft. Total Covered area - 11173 Sq. Ft.
i.	ii. Carpet area: G+1	11173 Sq. Ft.
j.	iii. School-le-gra: G+1	11173 Sq. Ft. Ft.
k.	Is the building owner-occupied / tenured / built?	100% Owner occupied
l.	If the partly owner - occupied specify portion and extent of area under owners' occupation	Owner
m.	Whether the property is under rent (partial etc.)	N.A.
n.	Names of tenants / owners / lessees, etc.	N.A.
o.	Forthing in their occupation	N.A.
p.	Monthly or annual rent/compensation / license fee, etc. Paid by each	N.A.
q.	Drugs amount received for the whole property	N.A.
r.	Are any of the occupants related to, or does business associates of the owner?	N.A.
s.	In separate amount being recovered for the use of fixtures like free devices, refrigerators, cooking ranges built in wardrobes, etc. or for service changes, if any, to be borne by the owner	N.A.

1.	Give details of water and electricity charges, if any, to be borne by the owner.	Detail with the owner
2.	Is any dispute between landlord and tenant regarding rent pending in a court of law?	N.A.
3.	Has any standard rent been fixed for the premises under any law relating to the control of rent.	N.A.
4.	Has the tenant to hear the advice of part of the cost of repairs and maintenance/ time particulars.	N.A.
5.	If a lot is installed, who is to hear the cost of maintenance and operations owner or tenant?	N.A.
6.	If a pump is installed, who is to hear the cost of maintenance and operations owner or tenant?	Owner's
7.	Who has to hear the cost of electricity charges for lighting of common space like entrance hall, doors, postage, compound, etc. Owner or tenant?	Owner's
8.	What is the amount of property tax? What is to have in time details.	Details with the Owner
9.	Is the building insured? If so give the policy on, answer for which it is insured, risks covered and the annual premium.	Building Insurance Value Rs. 1,12,00,000/-
10.	Whether open date statutory dues such as property tax, municipal tax and other surgeries if any, have been paid.	Details with the owner
11.	Technical details of the building
12.	Number of doors or angles of room floor including bedrooms, if any.	1/2-2 1/2 - 1/2
13.	1 G+1	11173 Sq. Ft.
14.	Plants area floor-wise
15.	G+1	11173 Sq. Ft.
16.	Condition of the building
17.	Uncover: excellent, good, normal, poor	Good
18.	Uncover: excellent, good, normal, poor	Good
19.	Type of installation	Special Existing
20.	Drugs and windows (floor-wise)	MS
21.	Flooring (floor-wise)	CC
22.	Wall flooring (floor-wise)	Planned
23.	Specifications of construction (floor-wise) in respect of :
24.	Description
25.	Foundation	Special Existing
26.	Role
27.	Superintendent	ROD Frame Structure

d	Jolary/Govt & windows	MS
e	RCC works	RCC
f	Plastering	Plastered
g	Flooring, during, during	CC
h	Special Feeding as Marble, Granite, Wooden Paneling, Drills etc.	RA
i	Roofing including washer proof course	RCC
j	Drainage	Available
k	Special architectural or decorative features, if any
l	i. Internal wiring - (concealed/external)	Concealed
	ii. Class of fittings, Supplies/ordinary	Ordinary
m	Sanitary installation	As per requirement
n	No. of geysers
o	Class of fitting, superior / ordinary	Ordinary
p	Compound wall
i	Height and Length	2 Mtr. in the Periphery
ii	Type of construction	Brick Wall
q	No. of hbs and capacity
r	Underground sump - capacity and type of construction	NA
s	Overhead Tank
i	Where Located	Terrace
ii	Capacity	1000 Ltr.
t	Pumps - No. And Their Horse Power
u	Roads and paving within the compound, approximate area and type of paving	Piece
v	Sewage Disposal - whether connected to public sewers, if septic tanks provided no and capacity	Connected to public sewers
w	Quality / Class of construction	Good

6. TOTAL ABSTRACT OF THE ENTIRE PROPERTY

		Govt. Value (Rs.)	Market Value (Rs.)	Distress Side Value (Rs.)
Part - A	Land	Rs. 78,00,000/-	Rs. 1,03,00,000/-	Rs. 88,23,000/-
Part - B	Building	Rs. 1,45,32,000/-	Rs. 1,11,73,000/-	Rs. 94,97,000/-
	Extra items
	Attendings
	Miscellaneous
	Services
	TOTAL	Rs. 2,24,20,000/-	Rs. 2,15,53,000/-	Rs. 1,83,20,000/-
	Say		Rs. 2,16,60,000/-	Rs. 1,84,00,000/-

VALUATION SHEET

Property No. F-21, Industrial Area Surajpur, Site C, Greater Noida (U. P.), BASIS OF VALUATION:

DECLARATION

I/we hereby declare as under:

A. The information furnished above is true to the best of My / Our Knowledge and Belief. B. Neither Mr / We Nor Also Associate have any direct or indirect interest in the Advance or assets Valued. C. I/We are Neither related to the owner of the property which is being valued nor the Officers of the Branch from which the Borrower Prepares to Mortgage the Property Being Valued / Already Mortgaged to the Branch. D. The property was physically inspected by Mr. Snell Ramat On 05.01.2019 Along with (Name of the Snell official Accompanied, if any). E. The Title Deed (S) of the property under valuation is available with the Bank. F. The property is identified by 05.01.2018. G. This valuation is prepared without any prejudice or bias to any person or institution. H. This report is prepared based on available documents during My / Our visit to the site and Discussions made with the owner of the property.

I. The legal aspects are not considered in this valuation. J. The value of Land is taken into account by making due inquiries to the legality and ascertaining the safe value of the properties in the locality. K. Any Additions / Alterations made to the property after the date of valuations shall not fall under the scope of the report. L. We are neither the auditors or the Owner of the Property (IES) and their Street Associates nor are we the statutory auditors to the branch from which the loan is proposed to be availed. M. It Hereby Certified that the Percent Market value of the above property is, is, My/ Our Opinion No. 2,16,00,000/- and the estimated limitation value under the prior sale will be Rs. 1,04,00,000/- N. I/ We have not been dismissed or removed from Govt. involved or Consented of an offence connected with any Proceeding of Income Tax Act, Wealth Tax, Act Of G.B. Tax, Act Of Sale been Disclosed By the Bank / Financial Institution / Govt. Department / Public Sector Enterprise / Body Corporate Etc. O. This Valuation report Contains 15 page Only P. Photographs of the Asset Valued Exchanged

Valuation report check-list

Please ensure that the following important provisions are in order to the valuation report:

1.

Full names of all property owners are mentioned. Address of the property is ☐ ☐ mentioned and is same as those title deed

2.

Boundaries of the property are mentioned as per both, title deed and actual ☑ ☐ observations

3.

Clearly mentioned that property has been identified by the borrower on his own ☑ ☐ based on the address

4.

Type of property is clearly mentioned (averages agricultural, residential, ☑ ☐ commercial, industrial etc.)

5.

If land, clearly mentioned whether the land is land lurined plot or independent land ☒ ☐ a. Only "Yes" or "No" should be mentioned. "Not applicable" should not be ☐ mentioned here

6.

If vacant land, clearly mentioned that proper demarcation and fencing has been ☒ ☐ done

7.

If building, clearly mentioned that construction has been done according to the ☑ ☐ building plan approval ☐ a. If not, deviation should be clearly specified

8.

If building, clearly mentioned that building top/completion certificate has been ☒ ☐ obtained from competent authority

9.

Clearly mentioned whether access to the property is available ☐ a. Only "Yes" or "No" should be mentioned. "Not applicable" should not be ☐ mentioned here

10.

Basis for arriving at government value has been mentioned and necessary ☑ ☐ documents have been enclosed

Further, it is also stated that The Central Government of India has announced the demonetization on 08/11/2016 whereby the bank notes of Rs 500 & Rs 1000 were banned with intent to reduce the use of illicit and counterfeit cash therefore the bulky cash transaction of Rs 50,00,000/- in the year of 2018 are very suspicious and cannot be taken into consideration.

5.

That it is further pertinent to mention here that the cash transaction of Rs. 50,00,000/- (Rupees Fifty Lacs Only) has also not been recorded by the erstwhile director in the book of accounts of the corporate debtors and further the said facts fortified from the report of Forensic auditor. The verbatim observation of the forensic auditor in his report as finding No. 28 in Page no. 83 of the I.A No. 102/2021 is as under:-

"The Corporate Debtor under their books shown a total transfer of Assets Worth Rs. 1.75 Crores in place of actual sales consideration worth Rs. 2.25 Crores by the buyer, it clearly appears that Corporate Debtor diverted the money is Rs. 50 Lakhs which is evident from the records and said sum diverted into cash mode by the directors of corporate debtors and hence recoverable".

In the above mentioned facts and circumstances, this is the finest case of undervalued transaction of the property as the buyer has stated in his reply that the sale consideration of Rs. 2,25,00,000.00/- (Rupees Two Crore Twenty Five Lacs Only) and in the other hand the erstwhile director recorded the sale consideration at Rs. 1,75,00,000.00/- (Rupees One Crore Seventy Five Lacs Only) inclusive of sale of electrical equipment for Rs. 19,00,000/- (Rupees Nineteen Lacs Only) therefore, the difference of Rs. 50,00,000.00/- (Rupees Fifty Lacs Only) in both party's version clearly indicates that there is mala-fide intentions to execute un-registered and un-stamped as per the provisions of The Indian Stamp Act(MOU) dated 6/4/2018 to defraud to the stakeholders, of the corporate debtor therefore, the actual sale consideration of Rs. 2,25,00,000.00/- (Rupees Two Crore Twenty Five Lacs Only) has not been shown in the registered Sale deed dated 06/02/2019.

Further, buyer (R-3) himself admitted that the sale consideration of Rs. 2,25,00,000.00/- of the property but has failed to prove the payments of Rs. 50,00,000.00/- in cash allegedly given to the Corporate Debtor and Moreover, the erstwhile director has recorded the same sale to Rs 1,75,00,000/- (inclusive of sale of electrical equipment for Rs. 19,00,000/- (Rupees Nineteen Lacs Only) therefore, the property has been sold undervalued by Rs. 50,00,000.00/- therefore, the Corporate debtor should be compensated by Rs. 50,00,000/- by the Respondents as all the Respondents are in collusions with each other & have caused financial

11.

In view of the directions of the Hon'ble Adjudicating Authority vide order dated 06/07/2021, it is humbly submitted that the cash transactions of Rs. 50,00,000/- were not reflected in the Income Tax Return of Respondent No. 3. However, the issue in the present application is limited to the question of undervalued sale of property. The mode of payment is wholly irrelevant.